(CercleFinance.com) – Royal Bank of Canada announced on Wednesday that it had initiated monitoring of Sandoz shares with an ‘outperform’ opinion and a price target of 33 Swiss francs, judging the group to be well positioned to benefit from the ‘boom’ in biosimilar drugs .
In a research note, RBC explains that the Swiss generics specialist, recently separated from Novartis, should take advantage of the tremendous opportunities represented by its market, particularly in the United States.
While it recognizes that Sandoz is not particularly well equipped in terms of profitability compared to its main competitors, the Canadian broker emphasizes that the group plans to increase its margin by 600 basis points by 2028, a an objective that he considers credible.
According to the broker, Sandoz is able to post growth in its activity of around 5% as well as a ‘double-digit’ increase in its results, prospects which are not reflected in the stock price. current according to him.
Its price target shows an upside potential of around 40% compared to current levels.
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